Signing the contract

This discussion went on from 2 a.m. until 6 a.m.

Liu Chunsheng made a decision on the spot and planned to go home to get the money, then sign the contract the next day.

Although Chen Simian and Zhang Wenxiu were physically exhausted, their spirits were exceptionally high. After Liu Chunsheng left, they didn't get some rest until 9 a.m.

At 5:30 in the afternoon, Chen Yu came back from school and noticed his parents had just woken up. He curiously asked, "Mom and Dad, why are you up so late today? Didn't you go to the store?"

"We were too tired today, so we asked the two aunties to go instead."

"Oh."

"Kid, aren't you going to ask why we're so tired?"

"Wasn't it because the store was busy? You two seem really interested in doing business, so you don't mind staying up late."

"Hey, you're mocking your parents now."

Chen Simian jokingly scolded but was in a good mood today. He didn't get angry no matter what Chen Yu said. In fact, Chen Simian even said to Chen Yu like a child, "Son, let me tell you some good news."

"What good news?"

"Guess."

"Did you sell more than 100 pounds of snails yesterday?"

"We did sell more snails than usual yesterday, but that's not the good news."

"Did you win a big prize?"

"Your old man has never bought a lottery ticket, how could he win a big prize?"

"Did you find some money?"

"You're not very bright."

Chen Simian sighed, "Stop guessing, I'll tell you."

With a meaningful look, Zhang Wenxiu understood and said, "Xiaoyu, someone is franchising our Snail Beauty."

"Really?"

Indeed, it was good news.

Chen Yu was also excited by this news, "I didn't expect it to happen so soon."

"Yeah, I didn't expect it to happen so quickly," Chen Simian said.

"Um, Dad, what's the specific situation?"

"Well, it's like this. Last night, your mom and I were doing business, and a customer who was eating our snails suddenly said they wanted to franchise our shop. You wouldn't believe it; this guy talked to me from 2 a.m. to 6 a.m., and it exhausted me."

"Where is he now?"

"He went home to get the money. He said he'd bring 5,000 yuan to sign the contract tomorrow."

"What... 5,000?"

Chen Yu was nearly floored. "Dad, what kind of money is 5,000?"

"That's the franchise fee."

"You're only charging 5,000 for the franchise fee?"

"What else should we charge?"

Chen Simian looked at Chen Yu, somewhat puzzled, and said, "Look, this customer decided to franchise while eating, and we didn't have to do anything. We're making 5,000 yuan just like that. Isn't that great?"

"Dad, you..."

Chen Yu had tears in his eyes.

He had silently assumed that this franchise opportunity had come knocking on their door.

"Dad, did you really think he came to us voluntarily?"

"Isn't that the case?"

"Dad, you don't know, I've spent over 1,000 yuan advertising online recently."

Chen Yu briefly explained the franchise advertising he had done online in the past few days to his parents. "Dad, look, I spent 1,000 yuan on advertising, but you're only charging 5,000 yuan for the franchise fee, which means we've only collected 4,000 yuan in franchise fees."

"4,000 yuan is not a small amount."

"I... I..."

Chen Yu wanted to facepalm.

Then he took out the contract he had printed earlier from the room. "Dad, look, this is the franchise contract I had a lawyer draft before. Let me tell you, this contract cost me 1,000 yuan as well."

"1,000 yuan? Why is it so expensive?"

"That's still considered cheap. Large companies often spend millions just on contracts."

"Xiaoyu, don't scare me."

Chen Simian and Zhang Wenxiu flipped through the contract for a while, and Zhang Wenxiu said, "Xiaoyu, your mom used to think you were talking nonsense about franchising, but it turns out you had planned it all along."

"It's not really a well-thought-out plan. I just thought our Snail Beauty was unique, so why not take it to the next level?"

"Xiaoyu, how much do you want to set the franchise fee at?"

"30,000."

"Ah, 30,000."

Both of them were taken aback.

The entire small shop had a total investment of just over 10,000 yuan, and now they were talking about a franchise fee of 30,000 yuan.

"Dad, don't think 30,000 is too much. In reality, it's not. Our Snail Beauty isn't very well-known yet, but if our reputation grows, people would be willing to pay even 300,000, let alone 30,000. However, since we've already promised Mr. Liu, let's stick with the 5,000. He's the first to franchise our Snail Beauty, and you could say he has a keen eye. But we need to sign a confidentiality agreement with him, so he can't disclose the franchise fee. In the future, if we do more franchises, the starting fee should be at least 30,000."

"Xiaoyu, do you really think 30,000 isn't too much?"

"Dad, 30,000 might seem like a lot, but if they discover the profit margins in Snail Beauty, do you think they'll find it too much?"

These parents were even more business-savvy than Chen Yu.

Chen Yu had only made a suggestion, and Chen Simian and Zhang Wenxiu had already done the math.

Currently, Snail Beauty had 50-60 tables of customers each day, with an average turnover of about 30 yuan per table.

This meant they made approximately 1,500 yuan in daily income, netting over 20,000 yuan a month.

Of course, this was during the peak season.

The off-season's earnings remained unknown, but even if income dropped by half during the slow season, they would still earn 10,000 yuan a month.

With a monthly profit of 10,000 yuan, a mere 30,000 yuan franchise fee seemed insignificant.

"Xiaoyu, I'll follow your lead then. 30,000 it is, and I'll tell future franchisees the same."

"Yes, Dad, not only 30,000, but we should also set a franchise time limit. Every 5 years, they'll have to renew the contract and pay the franchise fee based on market conditions."

"Isn't that too strict?"

"Not really. Any business that can make money is something people would want to invest in. The fear lies in businesses where you can't make money. Even if they offer a free franchise or an indefinite agency, you might not want it."

That's true.

Look at all the super-brand businesses in the future, like KFC, McDonald's... they all come with a long list of conditions. Not only are the franchise fees astonishing, but there are also hundreds of mandatory conditions like location approval from the headquarters, a required minimum foot traffic, and adherence to the corporate decor. These conditions benefit both the franchisees and the businesses, ensuring professional management and preventing wealthy individuals from recklessly managing the business.

However, the reason these super-brand businesses dare to impose such conditions is that their brand can guarantee franchisees a profitable venture. When you can make money, what are a few conditions?

"Xiaoyu, let's go to the store first. You should come tomorrow when we sign the contract."

"Dad, I won't go. I trust you guys can handle it."

The contract was already prepared; they just needed to add the amount and sign it. As for the rest, Chen Yu left it to his parents.

The next day went smoothly.

Liu Chunsheng didn't break his promise and brought 5,000 yuan with him, along with his wife, back to Xinfeng.

Initially, Liu Chunsheng's wife had been skeptical, but after witnessing the bustling night scene at Snail Beauty the night before, they happily signed the contract.

"Mr. Liu, it's a pleasure to cooperate."

"Mr. Chen, it's a pleasure to cooperate."

"Hehe, Mr. Liu, you are our first franchisee for Snail Beauty. Therefore, we've offered you a significant discount on the franchise fee. We hope that you can keep this amount confidential."

"Mr. Chen, you don't need to worry. We just signed a confidentiality agreement earlier. I'm a person of my word."

"That's great to hear. By the way, Mr. Liu, when do you plan to open your business?"

"I've already identified a location in Nankang, and I'll have a discussion with the landlord tomorrow. If all goes well, our Snail Beauty Nankang branch could open in as soon as a week or as late as half a month."

"That's fantastic! I'll definitely come to support your grand opening."

"Thank you so much, Mr. Chen. Please offer us guidance in the future."

The evening was beautiful outside, and Chen Yu slept soundly that night.